Learn about this before you even think about meeting with a Realtor to look at homes. You will then be prepared and more relaxed knowing what to expect.
Here is a list of frequently asked questions regarding financing your home purchase. Please keep this on hand in as you may find it handy in the process.
What is the minimum down payment I need?
The minimum down payment for a re-sale, owner occupied residence is 5%
What documents do I need?
For the pre-approval the mortgage representative will need:
He will need to see a recent account (RSP, bank account, investments) statement showing the down payment amount and 1.5% of the purchase price for closing costs
What happens if I do an amendment?
It is important that any changes are brought to my attention right away to assure they are completed properly and on time.
How long does a pre-approval take?
Once I find a home, how long does my full approval take?
It is important to have all your documents ready ahead of time as the mortgage representative will need your full financing condition period to assure you a stress-free approval. The approval will come back in-between the moment the last documentation is received up until your financing condition date. (Usually 3 to 4 business days)
Is my mortgage rate guaranteed?
Once a product has been chosen a mortgage representative can hold that rate for 120 days. If you are buying a new build and then builder mortgage rates can be held for up to 2 years.
What if rates go down?
If rates go down before you move in, you get the lower rate. If you see rates have decreased contact the mortgage person anytime and have the review the changes. Also, when you are marking your closing date on the calendar, mark a reminder to contact the mortgage rep two weeks prior to this date so they can review all your details and assure you are getting the lower rate.
What if I find a lower rate?
Mortgage representatives work hard to assure clients have one of the most competitive rates in Canada on the best product for their needs. If you happen to find a lower rate please bring it to their attention so they can look into matching or beating it.
When do I sign?
Once your full approval is in place the mortgage representative will formalize the documents and invite you into sign. (Usually 7 business days after your approval)
I feel I need a bridge loan, how do I get one?
If your closing date on the house you are selling is after the closing date on the house you are purchasing you will need to bridge the mortgage.
Contact the mortgage representative, as the bridge loan request is client initiated. From this they will complete and collect the following:
How do I make a last minute change?
Once you have received our pre-signing verification email with all the details of your mortgage and have responded back confirming they are correct your application is then locked out and you are ready to sign.
After this time of confirmation, changes to the application (down payment amount, product type, names on the mortgage, etc.) can be made however as a caution they are difficult and can take up to 14 days as your application will have to be re-completed from the start and re-evaluated by the adjudicators and CMHC (if less than 20% down)
To assure a stress free process, It is important that when you are confirm the final details that you are certain they are as you would like them.
My lawyer has questions regarding my mortgage, what do I do?
If your lawyer contacts you with any questions during the process please have them call the mortgage representative immediately.
I applaud you if you got this far, feel free to email me any questions you might have at this time.